What is CIT v. Reliance Utilities & Power Ltd. authority for?

Where an assessee claims that investments were made out of own funds, interest disallowance under Section 14A read with Rule 8D may not apply if the assessee demonstrates the availability of sufficient interest-free funds to cover such investments.

How many judgments cite CIT v. Reliance Utilities & Power Ltd.?

2,118 judgments on BharatTax cite CIT v. Reliance Utilities & Power Ltd. (313 ITR 340), spanning 2013 to 2026.

Which sections of the Income Tax Act does CIT v. Reliance Utilities & Power Ltd. come up under?

It is most often cited in judgments turning on Section 14A, Section 36(1)(iii), Section 143(3), Section 115JB, Section 8D, Section 10(34).

CIT v. Reliance Utilities & Power Ltd. (313 ITR 340)

Viraj Profiles Ltd., Mumbai vs. Dy CIT-CC-3(2), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 775/MUM/2021[2013-14]Status: DisposedITAT Mumbai12 May 2023AY 2013-14

Bench: Shri Aby T. Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

…and advances given to group companies, therefore, the question of disallowance of interest u/s 36(1)(iii) does not arise. In this regard, he relied upon the decision of Hon'ble Bombay High court, in the case of CIT vs Reliance Utility and Power Limited (2009) 313 ITR 340 (Bom.). 8. The Ld. DR, on the other hand, strongly supporting order of the Ld.CIT(A) submitted that the assesee has failed to file necessary evidences before the lower authorities to prove that loans and advances given to group companies are for business purposes and also, it has sufficient own funds in excess of loans and advances. Therefore, th…

M/S. Icici Bank Ltd ( Erstwhile Icici Ltd), Mumbai vs. The Dy CIT RG 3(1), Mumbai

In the result, both the appeals are partly allowed

ITA 7589/MUM/2007[2001-2002]Status: DisposedITAT Mumbai27 Apr 2023AY 2001-2002

For Appellant: Ms. Aarti VissanjiFor Respondent: Shri K.C. Selvamani

Section 10Section 115JSection 143(2)Section 143(3)Section 14ASection 88

…e far exceeds the investment made in tax free interest income yielding assets, therefore, no disallowance of interest expenditure can be made in view of the decision of the Hon'ble Jurisdictional High Court in CIT v/s Reliance Utilities and Power Ltd., [2009] 313 ITR 340 (Bom.) and CIT v/s HDFC Bank Ltd., [2014] 366 ITR 505 (Bom.). As far as disallowance of administrative expenses is concerned, it is the contention of the assessee that in the preceding assessment year, it has voluntarily disallowed 1% of the administrative expenditure attributable to earning of exempt income. However, we have noted, in assessment…

Brahmaputra Finlease Pvt. Ltd., New Delhi vs. ACIT, Central Circle- 15, New Delhi

In the result, appeal of the assessee is allowed

ITA 6721/DEL/2019[2016-17]Status: DisposedITAT Delhi18 Apr 2023AY 2016-17

Section 143(3)Section 36(1)(iii)

…ted parties free of interest, therefore, I am of the considered opinion that no disallowance u/s 36(1)(iii) is called for. The Hon'ble Bombay High Court in the case of CIT vs. Reliance Utilities and 5 Ms/ Brahmaputra Finlease Pvt. Ltd. Power Ltd. reported in 313 ITR 340 has held that if there are funds available both interest free and overdraft and/or loans taken, then a presumption would arise that investments would be out of the interest free funds generated or available with the assessee company, if the interest free funds were sufficient to meet the investment. Various other decisions relied on by the Id. co…

Welspun Corp Ltd, Mumbai vs. DCIT Cen Cir 22, Mumbai

In the result, the appeals filed by the revenue are dismissed and the appeals filed by the assessee are partly allowed for statistical purposes

ITA 3890/MUM/2016[2008-09]Status: DisposedITAT Mumbai03 Apr 2023AY 2008-09

Bench: Shri Prashant Maharishi & Shri Pavan Kumar Gadale

Section 143(3)Section 14ASection 32(1)(iia)

…IN THE INCOME TAX APPELLATE TRIBUNAL “J” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No. 5063/Mum/2016 (2009-10) ITA No. 5166/Mum/2016 (2011-12) M/s. Welspun Corp Ltd, Vs. DCIT, Central Circle - 7th Floor, Welspun 22, (Now CC – 3(3)) House, Kamala Mill Room No. 465, 4th Compund, SB Marg, Floor,AayakarBhavan, Lower Parel, Mumbai-400020. Mumbai -400013. "थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAACW0744L Appellant .. Respondent ITA No. 5483/Mum/2016 (2009-10) ITA No. 5044/Mum/2016 (2011-12) DCIT, Central Circle - Vs. M/s.Welspun Corp Ltd 22, (Now…

M/S. Ecoplast Ltd., Valsad vs. Asst. Cmmissioner of Income Tax, Valsad Renge, Valsad

In the result, appeal filed by the assessee is allowed

ITA 545/SRT/2019[2016-17]Status: DisposedITAT Surat30 Mar 2023AY 2016-17

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.545/Srt/2019 "नधा"रण वष"/Assessment Year: (2016-17) (Physical Court Hearing) Ecoplast Ltd., Vs. The Acit, Valsad Circle, S No.309, National Highway No.8, Valsad. Water Works Cross Road, Abrama, Valsad – 396002. (Assessee) (Respondent) "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aaace5030H

Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 36(1)(iii)

…upreme Court in the case of SA builder Ltd. Vs CIT, 158 Taxman 74, Delhi High Court. Other decisions referred by the assessee on this issue were: In the case of CIT Vs Dalmia cement Ltd. 254 ITR 377, and in the case of CIT Vs. Reliance Utilities and Power Ltd 313 ITR 340. Thus, we note that above facts and decision of Hon`ble Supreme Court in the case of SA builder Ltd. Vs CIT, 158 Taxman 74, have not been considered by the Tribunal ( in assessee`s own case) in right perspective. Who can help the wholly owned subsidiary in needy hours? This is the parent company, who can help the wholly owned subsidiary in needy…

ACIT, Circle-14(1)(2), Mumbai vs. M/S Reliance Infrastructure Ltd, Mumbai

In the result, appeal of the Revenue is dismissed and appeal of the assessee is allowed

ITA 2796/MUM/2022[2016-2017]Status: DisposedITAT Mumbai29 Mar 2023AY 2016-2017

Section 10Section 115JSection 143(3)Section 14ASection 801ASection 80I

…O has though not disputed this fact that assessee had interest free funds, but he rejected the plea that no disallowance u/s.14A can be made on the basis of decisions of the Hon’ble Bombay High Court in the case of Reliance Utilities and Power Ltd reported in 313 ITR 340; and the two decisions of Hon’ble Bombay High Court in the case of HDFC Bank Ltd. reported in (2014) 49 taxmann.com 335; and (2016) 67 taxmann.com 42, stating that these judgment do not lay down the correct law and he finally, mechanically apply Rule 8D and worked out the disallowance at Rs.238,59,77,646/- and after reducing suomoto disallowance…

Reliance Infrastructure Ltd, Mumbai vs. Asstt. Commissioner of Income Tax 14(1)(2), Mumbai

In the result, appeal of the Revenue is dismissed and appeal of the assessee is allowed

ITA 2590/MUM/2022[2016-2017]Status: DisposedITAT Mumbai29 Mar 2023AY 2016-2017

Section 10Section 115JSection 143(3)Section 14ASection 801ASection 80I

…O has though not disputed this fact that assessee had interest free funds, but he rejected the plea that no disallowance u/s.14A can be made on the basis of decisions of the Hon’ble Bombay High Court in the case of Reliance Utilities and Power Ltd reported in 313 ITR 340; and the two decisions of Hon’ble Bombay High Court in the case of HDFC Bank Ltd. reported in (2014) 49 taxmann.com 335; and (2016) 67 taxmann.com 42, stating that these judgment do not lay down the correct law and he finally, mechanically apply Rule 8D and worked out the disallowance at Rs.238,59,77,646/- and after reducing suomoto disallowance…

Tolani Shipping Co. Ltd., Mumbai vs. DCIT, Cir-5(3)(2), Mumbai

In the result, appeal of the assessee is allowed, in terms aforesaid

ITA 2238/MUM/2022[2016-17]Status: DisposedITAT Mumbai29 Mar 2023AY 2016-17

Bench: Shri Vikas Awasthy & Shri M Balaganeshvk-Vk-La- 2238@Eaqcbz@2022 ¼Fu-Oa- 2016&17½ M/S Tolani Shipping Co. Ltd. 10-A, Bhaktawar, R. P. Goenka Marg, Nariman Point Mumbai-400 021 ..... Vihykfkhz/Appellant Pan No. Aaact4127C Cuke Vs. Asst. Commissioner Of Income Tax Circle 5 (3) (2), 573, Aayakar Bhavan, M.K. Road, ..... Izfroknh/Respondent Mumbai-400 020

For Appellant: Shri Satyaprakash Singh izfroknh }kjk@For Respondent: Ms. Richa Gulati, Sr. AR

Section 14A

…आयकर अपीलीय अधिकरण eqacbZ ihB ßbZÞ eaqcbZ Jh fodkl voLFkh] U;kf;d lnL;],oa Jh ,e ckyx.ks’k] ys[kkdkj lnL; ds le{k IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “E” BENCH BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI M BALAGANESH, ACCOUNTANT MEMBER vk-vk-la- 2238@eaqcbZ@2022 ¼fu-oa- 2016&17½ M/s Tolani Shipping Co. Ltd. 10-A, Bhaktawar, R. P. Goenka Marg, Nariman Point Mumbai-400 021 ..... vihykFkhZ/Appellant PAN No. AAACT4127C cuke Vs. Asst. Commissioner of Income Tax Circle 5 (3) (2), 573, Aayakar Bhavan, M.K. Road, ..... izfroknh/Respondent Mumbai-400 020 vihykFkhZ }kjk@Appellant by : Shri Satyaprak…

DCIT 1(1)(2), Mumbai vs. Forbes & Company Ltd, Mumbai

In the result, the appeal is allowed for statistical purpose

ITA 4493/MUM/2017[2013-14]Status: DisposedITAT Mumbai20 Mar 2023AY 2013-14

Bench: Shir Pavan Kumar Gadale & Shri Gagan Goyal

For Appellant: Mr.Ketan Ved & Mr.AbdulkadirFor Respondent: Mr, Ankush Kapoor, CIT &

Section 143(1)Section 143(2)Section 14ASection 250Section 35A

…available with it at the beginning of the year as well as the closing of the year ore enough to cover the investments which have yielded the exempt income and therefore, following the ratio of Hon'ble Bombay High Court in the case of OT vs. Reliance Utilities 313 ITR 340, no interest expenditure can to attributable to such investments. 9. On this aspect, the learned OT-DR appearing far the Revenue contended that the language by which the M/s Forbes and Company Ltd, Mumbai. ITA no 1002&4493/Mum/2017 ITA .no 1816/Mum/2019 & ITA no.1682/Mum/2021. Assessing Officer is required to record the satisfaction mandated u/s.…

DCIT - 1 (1) (2), Mumbai vs. Forbes & Company Ltd., Mumbai

In the result, the appeal is allowed for statistical purpose

ITA 1002/MUM/2017[2010-11]Status: DisposedITAT Mumbai17 Mar 2023AY 2010-11

Bench: Shir Pavan Kumar Gadale & Shri Gagan Goyal

For Appellant: Mr.Ketan Ved & Mr.AbdulkadirFor Respondent: Mr, Ankush Kapoor, CIT &

Section 143(1)Section 143(2)Section 14ASection 250Section 35A

…available with it at the beginning of the year as well as the closing of the year ore enough to cover the investments which have yielded the exempt income and therefore, following the ratio of Hon'ble Bombay High Court in the case of OT vs. Reliance Utilities 313 ITR 340, no interest expenditure can to attributable to such investments. 9. On this aspect, the learned OT-DR appearing far the Revenue contended that the language by which the M/s Forbes and Company Ltd, Mumbai. ITA no 1002&4493/Mum/2017 ITA .no 1816/Mum/2019 & ITA no.1682/Mum/2021. Assessing Officer is required to record the satisfaction mandated u/s.…

ACIT, Circle - 11(2), Kolkata vs. M/S. Safal Properties Pvt. Ltd., Kolkata

In the result, appeal of the revenue is dismissed

ITA 2515/KOL/2018[2013-14]Status: DisposedITAT Kolkata16 Mar 2023AY 2013-14

Bench: Shri Rajpal Yadav & Shri Girish Agrawalassessment Year: 2013-14

For Appellant: Shri Vijay Kumar, Addl. CITFor Respondent: Shri Saurav Bagharia & Shri Ritesh Goel, AR

Section 143(3)Section 14ASection 40A(2)

…empt income during the year. Further, assessee had its own funds which are more than the investment made by it in the unquoted shares. Ld. CIT(A) considering these facts and by placing reliance on the decision of CIT Vs. Reliance Utilities & Power Ltd. (2009) 313 ITR 340 (Bom.) and CIT Vs. HDFC Bank Ltd. (2014) 49 taxmann.com 335 (Bom.) deleted the disallowance so made. We find that the issue where assessee has earned no exempt income during the year no disallowance is called for u/s. 14A of the Act has been addressed by the Hon’ble Delhi High Court in the case of PCIT Vs. Era Infrastructure (India) Ltd. in ITA N…

Vodafone Essar Ltd., Mumbai vs. Addl. CIT, Chandigarh

ITA 216/CHANDI/2011[2006-07]Status: DisposedITAT Mumbai16 Mar 2023AY 2006-07

Bench: Shri Vikas Awasthy & Shri M. Balaganeshआअसं. 216/ चंडी/2011 (िन.व. 2006-07) आअसं. 1173/चांडी /2011 (िन.व. 2007-08) Vodafone India Ltd. (Formerly Known As ‘ Vodafone Essar Limited’) Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013. ...... अपीलाथ"/Appellant Pan:Aaach-5332-B बनाम Vs. Additional Commissioner Of Income Tax, Range -1, ..... ""तवाद"/Respondent Chandigarh. अपीलाथ" "वारा/ Appellant By : Shri Salil Kapoor With S/Shri Vibhu Jain & Ninad Patade ""तवाद" "वारा/Respondent By : Shri Anand Mohan

For Appellant: Shri Salil Kapoor with S/Shri Vibhu Jain and Ninad PatadeFor Respondent: Shri Anand Mohan

Section 115JSection 144C(13)Section 14ASection 234BSection 271(1)(c)Section 40Section 80I

…rves and surpluses are aggregating to Rs.8632 crores. To support his propostion, the ld.Counsel for the assessee placed reliance on the following decisions: (i) CIT vs. Reliance Industries Ltd., 410 ITR 466 (SC) (ii) CIT vs. Reliance Utilities & Power Ltd. , 313 ITR 340 (Bom). 18. Per contra, ld. Departmental Representative vehemently defended the impugned order. The ld. Departmental Representative submits that the assessee failed to substantiate business consideration with the subsidiaries to whom loans were advanced. The ld. Departmental Representative further submitted that Vodafone South Limited to whom loan…

M/S Vodafone Essar Ltd., Mumbai vs. Addl. CIT, Chandigarh

ITA 1173/CHANDI/2011[2007-08]Status: DisposedITAT Mumbai16 Mar 2023AY 2007-08

Bench: Shri Vikas Awasthy & Shri M. Balaganeshआअसं. 216/ चंडी/2011 (िन.व. 2006-07) आअसं. 1173/चांडी /2011 (िन.व. 2007-08) Vodafone India Ltd. (Formerly Known As ‘ Vodafone Essar Limited’) Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400 013. ...... अपीलाथ"/Appellant Pan:Aaach-5332-B बनाम Vs. Additional Commissioner Of Income Tax, Range -1, ..... ""तवाद"/Respondent Chandigarh. अपीलाथ" "वारा/ Appellant By : Shri Salil Kapoor With S/Shri Vibhu Jain & Ninad Patade ""तवाद" "वारा/Respondent By : Shri Anand Mohan

For Appellant: Shri Salil Kapoor with S/Shri Vibhu Jain and Ninad PatadeFor Respondent: Shri Anand Mohan

Section 115JSection 144C(13)Section 14ASection 234BSection 271(1)(c)Section 40Section 80I

…rves and surpluses are aggregating to Rs.8632 crores. To support his propostion, the ld.Counsel for the assessee placed reliance on the following decisions: (i) CIT vs. Reliance Industries Ltd., 410 ITR 466 (SC) (ii) CIT vs. Reliance Utilities & Power Ltd. , 313 ITR 340 (Bom). 18. Per contra, ld. Departmental Representative vehemently defended the impugned order. The ld. Departmental Representative submits that the assessee failed to substantiate business consideration with the subsidiaries to whom loans were advanced. The ld. Departmental Representative further submitted that Vodafone South Limited to whom loan…

DCIT(Ltu) - 1, Mumbai vs. Acc Ltd., Mumbai

In the result, appeal filed by assessee is partly allowed and appeal filed by the revenue is dismissed

ITA 3178/MUM/2019[2011-12]Status: DisposedITAT Mumbai28 Feb 2023AY 2011-12